Swiss referendum result means €2m more for Malta

The positive outcome of Sunday's referendum in Switzerland will mean that Malta will net an additional €2 million in funds over and above the already negotiated €855 million package granted under the EU cohesion policy for 2007-2013.

On Sunday, 53.4 per cent of the Swiss electorate voted in favour of pouring one billion Swiss francs into the 10 new member states over the next five years in exchange for bilateral agreements between the neutral European country and the EU which allows Switzerland to benefit from added trade and other commercial opportunities in an enlarged EU.

Sources close to the Commission yesterday told The Times that Malta's share of the Swiss contribution will amount to nearly CHF3 million or €2 million. Malta will also be able to tap some other minor funding from another CHF2 million budget reserved for projects deemed to be of high priority. Agreement had originally been reached last February following negotiations between the Maltese Permanent Representation in Brussels and representatives of the Swiss government. However, the overall agreement covering the 10 new member states had first to be approved by a popular referendum before coming into effect.

The lion's share of the Swiss money out of a total allocation of €650 million will go to Poland, the largest of the new member states.

Switzerland has often had tense relations with the EU, preferring to stay out of the bloc but wanting to win as many benefits as possible through bilateral agreements. The funds to be allocated to the new member states are part of the price that it has to pay for staying out of the EU club. During negotiations the EU made it clear that the benefits Berne receives from trade relations with the EU should be paid back in kind.

Regional Policy Commissioner Danuta Hubner welcomed the result and said that it will open a new chapter in EU-Swiss relations.

This is not the first such agreement to be signed between Malta and a non-EU member following its accession in 2004. A similar agreement was reached last year with three member countries of the European Free Trade Association, Iceland, Liechtenstein and Norway, granting an allocation of €3.6 million of cohesion funds to Malta.

The funds will be used for specific projects, particularly in the transport and environment field.